energy technologies and environmental protection april 3 rd, 2006, bucharest
TRANSCRIPT
Energy Technologies and Environmental Protection
April 3rd, 2006, Bucharest
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Petrom – the largest oil and gas producer in South Eastern Europe
Exploration and Production Estimated reserves of approximately 1 bn
boe.
Crude production in 2005: 5.2 mn tons
Gas production in 2005: 6.2 bn cubic meters
Petrom owns concession rights of development and production for 19 blocks, including 300 commercial oil and gas reservoirs
In Kazakhstan, the company owns 6 concessions for exploration and production
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Petrom – the largest oil and gas producer in South Eastern Europe
Refining
The largest refining operator in Romania
Its two own refineries, Petrobrazi and Arpechim, have an annual refining capacity of 8 million tons
The crude processed in 2005: 6,399 thousand tons
Both refineries produce fuels in accordance with the European standards for environment and quality.
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Petrom – the largest oil and gas producer in South Eastern Europe
Marketing
Leader of the Romanian retail market, with a network formed of 550 filling stations
International network of 82 filling stations in Moldavia and Hungary
Sales volume in 2005: 5,046 thousand tons
In 2005 a new concept for the filling stations was launched, Petrom V, which sets new industry standards
In 2005, the company introduced an efficient system for the administration of the filling stations, called Full Agency
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►EBIT turned positive as Petrom benefited from a favorable
environment and an improved controlling of the operating costs
►Proposed dividends to the General Meeting of Shareholders: RON
738.4 mn
Positive financial results in 2005
RON mn 2005 2004
Earnings before interest and taxes (EBIT) 1,884 (581)
Earnings before interest, taxes, depreciation and amortization (EBITDA) 2,775 114
Net income 1,416 (974)
Turnover 10,760 8,688
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Energy Trends 2030 for EU25Representative of Europe
Change in energy consumption EU-25
0
200
400
600
800
1990 2000 2010 2020 2030
mto
e
OilGas
Coal
Nuclear energy
Renewables
High price scenario
Baseline scenario
► Shows rising energy demand► Trend shows switchover to lower carbon fuels► Switch depends on Price scenario
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Predicted Energy Trends for Romania
► Similar trends to those in Europe:
►rising energy demand;►some switchover to lower carbon fuels►switch again depends on price
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Petrom 2010Dominating the integrated oil and gas market in South Eastern Europe
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Products
► Reduce air pollution of product use
► Reduce energy consumption during product use
► Lower carbon fuels
Production
► Reduce contamination of the environment with hydrocarbons (spills, leakages, emissions) to as low as reasonable practical
► Reduce energy intensity► Increase operational efficiency► Optimize waste management
Oil & Gas Technologies and the Environment Protection Challenges
Our contribution: pioneering solutions in both areas!
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Products
► Fuel and heating oil quality – EU standard earlier than necessary
► Gas to Oil ratio (app. 50/50)
► Biofuels (planned to ensure blending in accordance with Directive 2003/30/EC of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport)
► Consumer information on environmentally friendly product use
Production
► Raise technical standards to EU level of existing plants
► Raise awareness among total workforce about environmental issues
► Introduce voluntary standards e.g. zero flaring policy for offshore platforms
► Enhanced oil recovery and underground storage of natural gas
Oil & Gas Technologies and the Environment ProtectionPetrom contribution
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Oil & Gas Technologies and the Environment ProtectionPetrom contribution
Total investment until 2010 - 3 bn EUR►sustain growth of the company ►raise environmental standards and efficiency (less CO2 per unit
of product produced)►maintain a strong gas business (less carbon intensive than oil)►secure energy supply for Romania
Thank you!